Ching Lee Plunges 91% as Hong Kong’s Small-Cap Volatility Soars

  • Stock jumped 700% on its trading debut five months ago
  • GEM board IPOs this year have fallen average 59% from highs
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A Hong Kong building contractor plunged 91 percent to become another victim of turbulence on the city’s small-cap enterprise market.

Ching Lee Holdings Ltd. shares slumped to 45 H.K. cents at the close on record volume, wiping out $564 million of value. The company reached a high of HK$5.86 on July 13 after surging about 700 percent on its March 29 debut. An employee at Ching Lee said company officials could not immediately respond to questions.